Under stricter European Union regulations taking effect this year, automakers selling cars in Europe face large penalties if their vehicle

Tesla has joined BMW and Chinese producers in filing a challenge at the Court of Justice of the European Union (CJEU) against EU tariffs on China-made electric vehicles, according to a filing on the court's website on Monday.

The automaker saw sales of its EVs drop 13% in the European Union in 2024, and is facing growing pressure as rivals launch a wave of cheaper EVs.

Tesla's legal challenge is in response to the EU introducing tariffs at the end of October of 7.8 percent on Tesla's China-made vehicles. The bloc has also set tariffs of up to 35.3 percent on other China-made EVs. The new tariffs come on top of a 10 percent standard import tariff that was already in place for electric vehicle imports into the EU.

Tesla and BMW sue EU over tariffs on electric vehicles from China, joining Chinese automakers that filed claims. Read more.

The EU imposed extra tariffs of up to 35% on Chinese-manufactured EVs in October after an anti-subsidy investigation found Chinese state support was unfairly undercutting European automakers.

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Elon Musk’s Tesla and Bayerische Motoren Werke AG (BMW) have sued the European Union’s (EU) executive, adding to a flurry of cases by Chinese carmakers attacking tariffs peaking at 45% on imports of electric vehicles (EVs) into the bloc.

Tesla, meanwhile, benefits significantly from carbon credit sales. In 2023, the company earned $1.79 billion from credits, and its income from such sa

Both BMW and Tesla have been hit with tariffs by the EU on imports of electric vehicles made in China, along with other Chinese manufacturers such as BYD and SAIC.

Although Tesla is an American company, it builds Model 3s in Shanghai and exports them to Europe. According to The Financial Times, Tesla accounted for approximately 28% of all Chinese-made EVs imported to the EU in 2023.